Naval surveillance radar engineering support services contract awarded to Engility Services, LLC for over $36.8 million

Contract Overview

Contract Amount: $36,876,080 ($36.9M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2013-06-13

End Date: 2024-01-25

Contract Duration: 3,878 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: IGF::CT::IGF NAVAL SURVEILLANCE RADAR ENGINEERING SUPPORT SERVICES

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $36.9 million to ENGILITY SERVICES, LLC for work described as: IGF::CT::IGF NAVAL SURVEILLANCE RADAR ENGINEERING SUPPORT SERVICES Key points: 1. Contract value exceeds $36.8 million over its lifecycle. 2. Full and open competition was utilized for this award. 3. The contract has a long performance period, spanning over 11 years. 4. The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. 5. The contract was awarded as a delivery order under a larger contract vehicle. 6. The North American Industry Classification System (NAICS) code is 541330 for Engineering Services. 7. The contract was awarded by the Department of Defense. 8. The contract has been active for over a decade.

Value Assessment

Rating: fair

The contract's total value of over $36.8 million over an 11-year period suggests a significant investment in engineering services for naval surveillance radar. Benchmarking this value is challenging without specific details on the scope of services and deliverables. However, the Cost Plus Incentive Fee (CPIF) contract type introduces inherent risk, as it allows for costs to exceed initial estimates, with incentives tied to performance. This structure requires robust oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete for this work. The presence of two bidders suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to a broad range of capabilities, the specific number of bidders can influence the ultimate price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider pool of contractors to offer their best pricing and innovative solutions.

Public Impact

The Department of Defense benefits from specialized engineering support for critical naval surveillance radar systems. This contract ensures the continued operational readiness and technological advancement of naval radar capabilities. The services provided likely support national security interests by maintaining advanced defense infrastructure. The contract may indirectly support a specialized engineering workforce within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type carries a risk of cost overruns if performance targets are not met or if costs escalate beyond projections.
The long duration of the contract (over 11 years) could lead to potential scope creep or a decrease in cost-effectiveness over time if not actively managed.
Limited competition (2 bidders) might not have yielded the most competitive pricing compared to a scenario with more active bidders.

Positive Signals

Awarded under full and open competition, which generally promotes fair pricing and access to a wide range of capabilities.
The contract has a defined performance period, allowing for structured planning and execution of engineering services.
The delivery order structure suggests it is part of a broader contracting strategy, potentially leveraging existing relationships and streamlined processes.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technology. The market for defense engineering services is substantial, driven by the continuous need for modernization and maintenance of complex military systems. Comparable spending benchmarks would typically involve other large-scale engineering support contracts for defense platforms, where costs are influenced by technical complexity, security requirements, and the specialized expertise needed.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a specific set-aside. The primary contractor, Engility Services, LLC, would determine any subcontracting opportunities based on its own business strategy and the nature of the work required.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Contract Management Agency (DCMA). As a Cost Plus Incentive Fee (CPIF) contract, rigorous financial and performance oversight is crucial to monitor costs, ensure adherence to performance incentives, and prevent potential overruns. Transparency would be facilitated through regular reporting requirements mandated by the contract terms.

Related Government Programs

Naval Radar Systems Modernization
Defense Engineering Services
Surveillance Technology Procurement
Department of Defense IT and Engineering Support

Risk Flags

Long contract duration may increase risk of technological obsolescence.
CPIF contract type requires vigilant oversight to manage costs.
Limited number of bidders could indicate potential for higher pricing.
Potential for scope creep over the extended performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.9 million to ENGILITY SERVICES, LLC. IGF::CT::IGF NAVAL SURVEILLANCE RADAR ENGINEERING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $36.9 million.

What is the period of performance?

Start: 2013-06-13. End: 2024-01-25.

What is the specific scope of 'Naval Surveillance Radar Engineering Support Services' provided under this contract?

The specific scope of 'Naval Surveillance Radar Engineering Support Services' is not detailed in the provided data. However, based on the contract title and the nature of engineering services for radar systems, it likely encompasses a range of activities. These could include design, development, testing, integration, maintenance, and lifecycle support for various naval radar platforms. This might involve software engineering, hardware engineering, systems engineering, and technical support to ensure the optimal performance, reliability, and technological currency of these critical defense assets. The Cost Plus Incentive Fee (CPIF) structure suggests that performance metrics related to technical objectives, cost control, or schedule adherence are likely defined and incentivized.

How does the Cost Plus Incentive Fee (CPIF) structure impact the overall cost-effectiveness of this contract?

The Cost Plus Incentive Fee (CPIF) structure aims to incentivize the contractor to perform efficiently by sharing in cost savings or penalties based on achieving specific performance targets. In theory, this can lead to cost-effectiveness if the targets are well-defined and achievable, and if the contractor is motivated to meet them. However, CPIF contracts also carry inherent risks. If the base cost estimates are inaccurate or if the performance targets are too lenient, costs can escalate beyond initial projections, potentially making the contract less cost-effective than a fixed-price arrangement. Robust government oversight is essential to ensure that the incentives are aligned with achieving the best value for the government and that costs are managed effectively throughout the contract's lifecycle.

What are the potential risks associated with the long performance period of over 11 years?

A performance period exceeding 11 years presents several potential risks. Firstly, technological obsolescence is a significant concern; radar technology can evolve rapidly, and a contract spanning over a decade might struggle to keep pace with advancements unless there are mechanisms for regular updates or re-competition. Secondly, the risk of scope creep increases over such a long duration, where the scope of work may expand beyond the original intent, leading to increased costs. Thirdly, maintaining contractor performance and motivation over an extended period can be challenging. Finally, market conditions and the contractor's own business stability can change, introducing unforeseen risks. Effective contract management, including regular reviews and potential modifications, is crucial to mitigate these long-term risks.

Given the full and open competition, why were there only two bidders for this contract?

The fact that only two bidders participated in the full and open competition for this contract, despite its significant value, could be attributed to several factors. The specialized nature of naval surveillance radar engineering support may require highly specific technical expertise, certifications, or clearances that limit the pool of qualified contractors. The complexity and technical requirements of the solicitation might have deterred smaller or less specialized firms. Additionally, the contract vehicle under which this delivery order was issued might have had its own pre-qualification requirements. It's also possible that other potential bidders chose not to pursue this opportunity due to strategic business decisions, resource allocation, or perceived risks associated with the contract.

How does this contract compare to other engineering services contracts within the Department of Defense?

Comparing this contract to others within the Department of Defense (DoD) requires more granular data on the specific services rendered and their complexity. However, as a contract valued at over $36.8 million for engineering services related to critical naval systems, it represents a substantial investment. The DoD frequently awards large engineering support contracts, often utilizing CPIF or other cost-reimbursement structures for complex R&D or sustainment efforts where precise costs are difficult to predict. The duration of over 11 years is relatively long, suggesting a focus on long-term sustainment or development rather than a short-term project. Its full and open competition, albeit with limited bidders, aligns with DoD's general procurement policies aimed at maximizing competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002412R3291

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 35 NEW ENGLAND BUSINESS CENTER DR STE 200, ANDOVER, MA, 01810

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,961,163

Exercised Options: $37,961,163

Current Obligation: $36,876,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017810D6332

IDV Type: IDC

Timeline